Pernod Ricard Must Approach Excise Authority To Renew Liquor Licence: Delhi High Court

Spirit maker Pernod Ricard's bid against the state government to renew its liquor sale licence in New Delhi was rejected by a single-Judge bench of the high court on Tuesday due to ongoing investigations into the company.

The high court observed that Ricard’s writ petition was not maintainable as there are provisions permitting it to approach an appellate excise authority against the order of the Delhi government. The Delhi High Court has allowed the company to approach the appellate authority within two weeks.

The Delhi government's decision to reject Pernod Ricard's liquor licence application was based on the findings of the Enforcement Directorate and the Central Bureau of Investigation.

It had rejected Pernod Ricard's application for a liquor licence for 2022-23 after receiving an order from the ED and a charge sheet from the CBI alleging that Pernod Ricard was involved in a criminal conspiracy to rig the Delhi liquor market.

The ED's order had stated that an employee of Pernod Ricard was arrested, along with others including Vijay Nair, a former top official in the Delhi government's excise department, for being involved in irregularities while implementing the new excise policy.

Pernod Ricard India, which owns brands such as Royal Stag and Blenders Pride, had appealed against the order of the excise authorities denying it an operating licence.

The company had argued that just because one of its employees was arrested by the ED, it does not mean that the company lacks moral character or has criminal antecedents.

Noting the enforcement agencies’ finding, the high court dismissed Pernod Ricard’s writ petition on grounds of maintainability without going into the merits. The court further asked the excise authority to give the company a chance of oral hearing, if asked for and pass an order within a month of that hearing.